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ADRs of Argentine companies fell up to 16.7% led by banks

The Argentine stock market kept his bullish trend in the first week of 2024 and surpassed the psychological barrier of one million points this Friday, December 5, in a roundtable where his sights were set on the meeting with the International Monetary Fund (IMF). Meanwhile, the Argentine stocks in Wall Street closed mixed but ended the week with a strong loss led by the banking sector.

Local stock market rose driven by the CCL and coverage searches

In that framework, he S&P Merval rose 5% in pesosuntil 1,018,301.55 unitsdriven by a new advance of the CCL dollar; accumulated in this way an increase of 13.5% in the first 4 days of the year. However, in dollarshe stock index continued to fall, this time by 0.1% (-3.5% in the week).

In the local market, the shares operated with a majority of increases, led by Mirgor (+18.2%), Telecom (+10%), Ternium (+8%). For its part, the only one that fell was Edenor (-0.9%).

This day it was known that The Government issued bonds for US$3.2 billion to be placed directly to the BCRA with amortization over 10 years to face short-term financial commitments, as published in the Official Gazette.

“This issuance (via letters) is (to) face maturities with private creditors,” the presidential spokesperson stated at a press conference. Manuel Adorni. “We understand that (with the measure) there is no type of financial damage for the central bank,” she added.

At the same time, this day it was reported there will be technical meetings with the IMF (of which) central bank officials (BCRA) will participatewhile the media agree that the contacts will extend until Monday, including conversations with the Minister of Economy, Luis Caputo, and the Chief of Staff, Nicolás Posse.

Caputo discussed the country’s economic program, including liability management, with bank representatives, but no official proposals have been made. “Everything seems to indicate that the Government met with the main representatives of the banking sector to offer them a proposal in order to redeem debt maturities in pesos this year”said Fernando Staropoli Account Executive rava.

And he expanded: “With a view to achieving the desired zero deficit, the exchange could become voluntary and would be implemented with the issuance of new bonds in pesos linked to the CPI (consumer price index). If carried out, this would mean a restructuring equivalent to US$71 billion. Of course we have to wait for the result of the negotiations, but It seems that this could have been one of the drivers of the day on the market“.

Argentine shares on Wall Street

For their part, the Argentine papers that are listed in Wall Street finished mixed. The increases were led by Central Port (+3%) and YPF (+2.9%) and Grupo Financiero Galicia (+1.5%) after the predictions of significant increases for Marcos Galperín’s company indicated by two large banks. Meanwhile, the falls were led by IRSA (-2.9%), Edenor (-2.8%), and Banco Macro (-2.1%).

During the week, the papers that lost the most were the financial ones: Banco Supervielle (-16.7%), Banco BBVA (-9.2%), Banco Macro (-8.7%).

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